Viad(US:VVI)2025-03-17 18:50Financial Performance - Total revenue for the year ended December 31, 2024, was $366.5 million, representing a 4.6% increase compared to $350.3 million in 2023[153]. - Revenue from attractions increased by 9.4% to $208.4 million in 2024, up from $190.4 million in 2023[153]. - Hospitality revenue decreased by $0.9 million in 2024, primarily due to a 4.7% decrease in Revenue per Available Room (RevPAR) caused by fewer room nights sold due to the Jasper wildfires[155]. - The number of visitors to attractions in 2024 reached 3,757,464, a 6.1% increase from 2023[158]. - Interest expense increased to $14.2 million in 2024, primarily due to higher revolving credit balances and the write-off of debt issuance costs[166]. - The effective income tax rate was negative 13.9% for 2024, compared to 47.4% for 2023, due to a valuation allowance on losses in the United States[171][174]. - Net cash provided by operating activities attributable to continuing operations was $56.9 million for the year ended December 31, 2024, a decrease of $23.8 million from the previous year[177][183]. - Total available liquidity as of December 31, 2024, was $49.7 million, down from $135.5 million in 2023, following the termination of the previous credit facility[176]. Business Operations - Pursuit (formerly Viad Corp) completed the sale of the GES Business for an aggregate purchase price of $535 million, consisting of a base price of $510 million and a deferred price of $25 million[16]. - The company relaunched as Pursuit Attractions and Hospitality, Inc., focusing on delivering unforgettable experiences in iconic destinations, and began trading under the new NYSE ticker symbol PRSU on January 2, 2025[17]. - The growth strategy includes Refresh, Build, and Buy initiatives aimed at acquiring or building high-return tourism assets in iconic destinations[56]. - The Jasper SkyTram attraction was acquired on December 31, 2024, offering visitors the opportunity to ascend 2,263 meters (8,081 feet) for breathtaking views[58]. - The Flyover Chicago attraction opened on March 1, 2024, and secured the 3 spot in USA Today's 10Best Readers' Choice Awards for Best New Attraction[43]. - The company operates attractions and hospitality experiences in the Canadian Rockies, Alaska, and Glacier Park, with a focus on unique offerings such as glacier explorations and immersive experiences[20][22][24]. - The Columbia Icefield Adventure and Columbia Icefield Skywalk attractions reopened on August 9, 2024, after being temporarily closed due to wildfire activity[58]. - The company acquired the assets of Eddie's Café & Mercantile and Apgar Lookout Retreat for expansion in Glacier National Park, enhancing its food and beverage services and accommodation offerings[67]. Community Engagement - The company collected and distributed over $215,000 and more than $120,000 in in-kind donations to communities in Canmore, Banff, Jasper, and Golden in 2023[75]. - A group of tourism companies, including the company, pledged over $5.5 million Canadian dollars to support the recovery of the Jasper community following the 2024 wildfires, with the company's pledge being $3.0 million Canadian dollars (approximately $2.1 million U.S. dollars)[75]. Challenges and Risks - The company reported that the 2024 wildfire activity in Jasper National Park negatively impacted visitation to its lodging properties and attractions during the peak tourist season[80]. - The company is vulnerable to economic fluctuations, which could materially affect consumer spending on leisure travel and related attractions[79]. - The company operates in a highly competitive industry, where brand recognition and service quality are critical for maintaining market share[81]. - The company’s insurance coverage may not be adequate to cover all possible losses, which could materially affect its business and results of operations[88]. - Labor shortages have resulted in increased labor costs, which could reduce profits and impact the ability to manage and grow the business[102]. - The company is subject to risks associated with global operations, including unstable local economic conditions and regulatory compliance costs[97]. - Cybersecurity risks are heightened due to reliance on IT infrastructure support from GES following the sale of the GES Business[103]. - The company may face challenges in funding capital expenditures due to reliance on cash flow from operations and external financing[93]. - The company faces ongoing litigation risks that could divert management's attention and resources, potentially leading to material adverse effects on operations[105]. - Changes in tax laws, such as California's 2024 law preventing the use of prior year net operating losses, could adversely affect the company's effective tax rate and financial performance[106]. - Extensive environmental regulations may increase costs and liabilities, impacting profitability and operational capabilities[107]. Financial Strategy and Investments - The company entered into a $200 million revolving credit facility on January 3, 2025, which is subject to financial covenants that could limit operational flexibility[89]. - Planned capital expenditures for the next 12 months are approximately $70 million to $75 million, including $38 million to $43 million on growth projects[179]. - The company plans to continue selective investments to advance its Refresh, Build, Buy growth strategy while maintaining a solid liquidity position[178]. Governance and Management - Michael "Bo" Heitz was appointed as the new Chief Financial Officer effective December 16, 2024, succeeding Ellen Ingersoll[126]. - The company maintains a comprehensive cybersecurity risk management strategy, integrating material risks into its enterprise risk management processes[111]. - The cybersecurity governance structure includes oversight by the Board of Directors and regular reporting on significant threats and risks[117]. - The company utilizes third-party service providers for cybersecurity risk management, including incident response and vendor risk assessments[115]. Asset Management - The company primarily owns its properties, which include attractions, hotels, and retail stores, ensuring adequate capacity for current operations[120]. - The company recorded asset impairment charges of $27.5 million and a non-cash goodwill impairment charge of $14.0 million related to its Flyover attractions as of October 31, 2024[92]. - The company recorded total tax benefits related to share-based compensation costs of $0.2 million in 2024, $0.1 million in 2023, and $0.1 million in 2022[212]. - The company recorded a non-cash impairment charge of $27.5 million on certain assets and a non-cash goodwill impairment charge of $14.0 million as of October 31, 2024[170][202].